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Prices have surged to unprecedented levels, driven by a combination of disease outbreaks, increased production costs, and regulatory changes. Understanding the factors behind rising egg prices and implementing strategic solutions is critical for navigating this volatile landscape.
But it goes beyond figuring out how to source the freshest ingredients at the best price. Extreme Weather: By 2035, experts predict that higher temperatures alone will push up worldwide food prices by between 0.9 Form Open Lines of Communication : Share your needs and challenges and be receptive to their feedback.
With egg prices increasing by 30 percent over the past year and expected to rise more, MRM asked Stasko for his best advice on what strategies restaurant owners can implement to prevent sharp menu price increases and innovative menu solutions they can implement. How can you avoid rising prices on egg-focused menu items?
Rising restaurant prices and increased cost-of-living expenses are significantly altering dining out habits in both the US and UK, according to a new survey from Attest. Among the key findings affecting restaurants: Price Sensitivity : 86 percent of consumers in both the US and UK feel restaurant prices are higher than last year.
Dynamic pricing would add friction to the guest experience, according to Capterra’s 2023 Dynamic Pricing in Restaurants. Sixty-five percent of consumers say dynamic pricing would make the decision of where and when to eat more difficult; 63 percent say it would make it harder to budget their restaurant spending.
"Restaurants thinking about implementing surge pricing need to balance the revenue upside with the potential brand backlash," says Savneet Singh, CEO of PAR Technology. "While Modern Restaurant Management (MRM) magazine asked Singh to elaborate on his views on where the pricing model is headed in the QSR landscape.
Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.
Omnichannel communications and value-oriented customer expectations are two elements challenging restaurant owners and operators, according to a survey from Klaviyo. Brand websites and web browsing are 533 percent more popular than online marketplaces for restaurant discovery.
In 2024, food prices have been high and consumer spending has been stretched thin, making it even more difficult for restaurants to attract new customers. Restaurants succeed or fail based on loyalty, which is a direct result of customer experience.
Minimizing Menu Price Increases : Just because diners are still eating out and ordering in, does not mean they are happy about higher menu prices. Restaurant operators should limit significant menu price increases, explore value menus when possible, and avoid implementing any sneaky service charges.
Eighty-one percent of diners said they would either stop going to a restaurant altogether or alter their dining hours to avoid prices surging during peak hours and 64 percent said they have a negative reaction to restaurants using surge and dynamic pricing, according to a HungerRush’s National Restaurant Price Surging Survey.
Adding pressure, price perceptions remain high. Almost four out of five RMS respondents feel restaurant and grocery prices have increased compared to the previous month. Bureau of Labor Statistics shows restaurant price increases continue to outpace grocery inflation. That doesn't always mean lower prices.
High coffee prices are becoming a lasting reality for the industry. While many assert that this signifies a long overdue change, as coffee has historically been an undervalued commodity, price volatility affects all levels of the supply chain in various ways. For coffee shops, in particular, margins are tighter than ever.
At the same time, a rise in fast-food prices driven by inflation is reshaping consumer behavior, with many customers now treating fast food as a splurge rather than a convenience. Transparent communication and well-synchronized platforms helps every phygital interaction feel reliable and intuitive.
Despite 93 percent of QSR operators indicating they raised prices in 2024, nearly two-thirds (64 percent) reported increased traffic across all dayparts, according to TransUnion’s QSR Industry Report: Bridging the Affordability and Profitability Gap.
At the same time, economic uncertainty, consumer price sensitivity, and limited resources remain pressing concerns. In an era where price-conscious diners seek value more than ever, restaurant loyalty programs are becoming indispensable. Transparency is key.
. "Value is a broader tent than price, but price is an important value platform when consumers are faced with high inflation or a personal economic situation such as a job loss," Tim Fires, president of global foodservice at Circana, told Modern Restaurant Management (MRM) magazine. "We
Segments like the College and University sector are attempting to plan budget for FY 2026 and are not able to get reliable pricing from their partners across the supply-chain. ” Higher tariffs will certainly cause prices to rise for U.S. ” Higher tariffs will certainly cause prices to rise for U.S.
This puts restaurateurs in a precarious position of having to communicate choices and challenges without sullying the fun of eating out. Customers who are attracted to sustainable eating “come find us because of our sourcing,” he adds, but “there’s only so many places we can communicate that.” without interruptions.
Coffee prices have soared over the past few years, pushing roasters, independent cafés, and specialty coffee retailers into challenging territory. For roasters and coffee shop owners alike, raising prices is no longer a choice but a necessity. Why are coffee prices staying so high?
In the bread aisle, you see two loaves identically wrapped; both are perfectly edible, but one is a day older and costs half the price. This is a business practice called dynamic pricing, and it may be coming soon to a supermarket near you. The price is changing throughout the [time] horizon.” Which do you choose?
Ditching Tipping for Higher Wages Some restaurants are opting to eliminate tipping altogether, raising menu prices to cover fair wages instead. While this might seem risky, surveys show that most customers are fine with slightly higher prices if it means doing away with tipping.
Brand Expression Through Uniform Design Branded apparel offers a controlled visual communication channel that reinforces your establishment's aesthetic. Evaluating total cost of ownership—including expected garment lifespan and replacement cycles—provides more accurate budgetary guidance than initial purchase price alone.
The primary focus of the websites is having what you need, at a good price. Putting empathy first in your communications can make a real difference. In many cases, they’ve basically taken people out of the equation almost entirely. It's a digital platform from start to finish.
How do you communicate restaurant policies and changes to your employees effectively? How do you maintain smooth communication between FOH and BOH staff? Becoming a restaurant manager entails leadership and communication skills. This question also gauges a potential manager’s leadership and communication skills.
Again, turn to the National Restaurant Association for guidance. [] PRICING YOUR MENU BY COMPARISON. More often than not – the success of your restaurant begins with effective menu planning, proper pricing, and consistent execution. Every business requires controls in pricing, consistency, quality, and cash handling.
And though that in and of itself is helpful, it also communicates something important to your employees – you care about their experience and want to make things easier for them. 3 – Foster Better Communication. Open and transparent communication is a hallmark of great leadership. Further, listen to your employees.
Many brands have been experimenting with new technology to help reduce the demand for labor and combat recent price inflation. Improving Communication with Customers With inflation increasing at record levels, it will be critical for QSR brands to easily relate the costs of materials, sourcing, and labor to customers clearly and concisely.
Explore areas where you can purchase supplies in bulk to cut long-term costs, consider raising prices where it makes sense, and work to improve discounts and payment terms with your suppliers. If competitors are easier to find and communicate with, your business could lose customers quickly. Hire the Right People.
It is consequentially more difficult for restaurant owners and operators to obtain comprehensive coverage at a fair price – let alone find policies with the specific coverages they need. Restaurant owners and operators should discuss these options with their insurer, who will help determine what coverage best fits their business.
All that said, bringing a brand to life requires a partnership with open lines of communication. There’s also a bigger focus today on guest engagement and community than ever before. Restaurant brands are now expected to build authentic relationships with guests, which requires transparency and two-way communication.
percent YOY) and throughout 2024 were primarily due to price increases, which have surged nearly 50 percent in some segments since the pre-pandemic era and were still up 3.0 Additional insights into QSR sales, traffic, and pricing trends are in the Revenue Management Solutions June Trend Report. Positive net sales in May (+1.9
This is where a buying group brings that advantage, helping source at the best price, quality, and then creating sourcing redundancy when mother nature gets in the way of supply with fresh agricultural products. Having many team members mean there are many salaries being paid and those salaries are accounted for in the service price.
. – Sophia Goldberg, Founder and CEO, Ansa The big lesson I learned is that I've had to continue to adapt my pricing, because people are still watching their spending. That's why we instituted lower-priced lunch specials and made other adjustments. – Stewart McClintic, Co-Owner of HQ98.com,
Standardized recipes, efficient prep work, and strong communication between back-of-house and front-of-house teams prevent bottlenecks. This means budgeting, tracking expenses like food and labor, and adjusting pricing to balance profitability with customer appeal. Offer clear career growth opportunities to keep employees engaged.
These challenges are impacting menu availability, raising the prices of menu items, leading to short staffs, increasing wait times for diners, and changing operating hours and offerings. Proactive communication and transparency is essential to managing the diner experience. At Arepitas in Round Rock, TX, Yelp user Emely T.
Communicate. Set up a clear line of communication for your customers to order grocery items. Simplify Pricing. Don’t try to price each item out, charge for a bundle “Grocery-to Go kit” and do not allow substitutions. Plan to sell your existing inventory before you add more. You have enough to deal with.
This may seem obvious, but keeping an open communication channel between management and staff is a great way to reinforce the importance of an active staff. Especially with buyers juggling 300+ ingredients each week, it can be difficult to stay on top of deals and prices.
And while these actors can certainly play an important role, their presence in the supply chain can often mean that producers end up receiving a smaller percentage of the final price of each cup of coffee. As part of this, farmers can receive higher prices for their coffee. This is especially important to note.
The more you understand your customers, the better you can fine-tune your marketing and pricing strategies. You can also use sales trends to adjust menu pricing and share customer-favorite menu items, helping you get the most out of high-demand dishes. Lets break down the key benefits of leveraging your restaurants customer data.
In addition, if you are open, you’ll want to be sure to communicate what specials you might be offering at this time, how people can contribute to your business (gift cards, virtual offerings, etc.) Social media is a great (and mostly free) tool to visually communicate with your community during these times.
Improved communication. If visibility is increased, then communication for employees can be more accurate. The savings are due to increased productivity and efficiency, the company can focus on innovation and growth rather than improving workflows and internal processes.
For BevAlc buyers, price point as a function of quality, although always important, will become crucial over the coming months and years. Finding the right balance of what local guests want, at the maximum price point and minimal cost could be the difference between surviving and closing the doors. The first important factor is margin.
" When it comes to pricing, the team at Margin Edge reports that operators and consumers should prepare to spend a bit more on items made with pumpkin puree. Regionally: The Midwest saw a 29 percent increase in the price of canned pumpkin from $8.09 percent increase in the price of canned pumpkin from $9.01 in June 2024.
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